I’m a tax lawyer based in San Francisco (www.WoodLLP.com), but I handle tax matters everywhere. I enjoy untangling a tax mess from the past, disputing taxes with the government or planning taxes for the future. One of my specialties is advising about lawsuit payments. Whether you’re receiving or paying a legal settlement, you can probably improve your tax position. I write frequently about taxes, from expatriation to sales tax, from selling your company to restitution. I’ve written over 30 tax books, but my best seller is still Taxation of Damage Awards and Settlement Payments. Contact me at wood@WoodLLP.com.

It’s no surprise that Tina Turner is no longer American. The U.S. Embassy in Bern, Switzerland confirms that she was in the embassy in late October to sign her “Statement of Voluntary Relinquishment of U.S. Citizenship.” Still, this was a long time coming.

Ms. Turner had announced the step in January. After her long-time residency there and marriage to German record executive Erwin Bach, it makes sense. And while it doubtless wasn’t tax motivated, our tax system doesn’t exactly help.

Ms.Turner retired from the concert stage in 2009. She moved to Switzerland in 1995 when her longtime partner, Mr. Bach, was transferred. Still, if Gérard Depardieu and Nicolas Sarkozy are quintessentially French, Tina Turner is quintessentially American.

Tina Turner, born Anna Mae Bullock, lives in the Zurich suburb of Kuesnacht. She needed approval from the canton of Zurich as well as Swiss federal authorities before receiving the red Swiss passport. Concerning taxes, it is worth noting that Swiss rates are high.

Yet filing tax returns in multiple nations and claiming foreign tax credits is an imperfect process that often results in tax mismatches. Add to that the annual FBAR forms that carry civil and criminal penalties all out of proportion to tax violations. Plus, FATCA now requires an annual Form 8938 to be filed with income tax returns.

And FATCA is ramping up now worldwide. On its own, it is really an enforcement device, requiring foreign banks to reveal American account holders. From all accounts, there are still many who haven’t come forward.

Some countries might expect more of a land rush than Switzerland. Russia’s Vladimir Putin embraced the previously French best-known actor Gérard Depardieu with a 13% low flat rate. That makes Russia even better than Singapore with its 18%. The latter is where Facebook’s Eduardo Saverin now calls home.

When France’s 75% was too much for Mr. Depardieu, Russia’s 13% seems svelte. Mr. Putin rolled out the red carpet when he granted Mr. Depardieu’s citizenship request. See what a good deal it is to pay tax in Russia, Mr. Depardieu’s visit seemed to proclaim?

France’s meteoric 75% tax rate was struck down, but will be back. Besides, France’s old 45% rate already dwarfed Russia’s 13%. LVMH’s Bernard Arnault applied for Belgian nationality, and many others have also voted with their feet. In Britain, the number of £1 million a year taxpayers fell by over 60%.

Given America’s controversial worldwide income tax, some look for greener pastures. Eduardo Saverin fled to tax-friendly Singapore on the heels of Facebook’s IPO. Yet not every exit is simple or free of U.S. tax. There is already a U.S. exit tax on giving up citizenship, and it can apply to giving up a Green Card too. Mr. Saverin’s exit triggered an even higher exit tax proposal.

Given America’s complex system and exit tax, anyone testing the water needs thoughtful planning and advice, even if Russia is gearing up for a new kind of business. It is unlikely that Switzerland will throw open its doors or that Ms. Turner will come up in many tax conversations. Even so, we can probably expect more of these conversations soon.

You can reach me at Wood@WoodLLP.com. This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.

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Tina Turner and Eduardo Saverin get mainstream media interested in this issue, but they are not the story. The story is the millions of expat Joe Q. Publics, who are not rich and not looking for ways to shelter income, flocking to embassies and consulates in increasing numbers to ditch what has become a very expensive, toxic citizenship.

The American diaspora sits at about 7 million. If FATCA stands, that number will drop close to zero within five years as US expats, finding life abroad financially untenable, either move home or renounce their U.S. citizenship. I wonder if all those FATCAnatics in Congress have given any thought to what that will mean for American exporters trying to sell things to other folks.

You are right that celebrities get the press but the issue is much bigger than this and impacts many regular people. I must say that even as a tax person who sees these kinds of issues, I too have been surprised at the degree of heartache and angst these issues cause expats. I do not think Congress has taken it seriously.

Yes, celebs are a very poor representation of who’s mostly affected by citizenship based taxation, although many are wealthy and would be subjected to the exit tax upon renunciation, which to me is discriminatory in nature.

How’s this for catchy: And it burns, burns, burns that wedding ring of fire.

Your statement “Concerning taxes, it is worth noting that Swiss rates are high” needs to be qualified. A middle class couple (making US$100k) may pay twice as much in taxes in the US, while a top earner may pay twice as much (or more) in Switzerland.

It really depends upon the situation. In my case with a family and a mortgage, my tax rate is low but the expenses can be quite high. With the current exchange rate, a family of four must earn more than $60,000/year to live above the poverty level in Switzerland, hence the need for low taxes. Not understanding this, the US looks at the tax rate to calculate its double-taxation interests on what it views as being big income, which happens to be just a bit above the poverty level.

A serious problem for US Persons resident in Switzerland is that the Swiss tax system (and there are federal, cantonal and communal taxes) are largely dependent upon wealth tax, which is not subject to any foreign tax credit Rev. Rul. 70-464. Some US states are persistent in claiming domicile over expatriates and the Swiss definition of domicile (registration with a commune) is quite different from the American or English ones. Then there is the issue of Swiss successions (decedents’ estates) and conflicts with US law: http://www.uniset.ca/misc/swissestates.pdf (a Zurich lawyer’s explanation formerly handed out by the Swiss Embassy in Washington).

Do not blame the 1%. Why would you expect “loyalty” from them when our own government is not “loyal” it’s own citizens? The answer is not to impose more taxes. A better response would be to make it more attractive to move back or, better yet, stay home. How would this be accomplished? LOWER TAXES for everyone!